The growth code of Douyin E-commerce: fully focusing on user experience

This article is based on publicly available information and is intended for informational exchange purposes only, not as any investment advice.

For China's e-commerce practitioners in 2024, the consensus on returning to user experience to drive growth is becoming increasingly clear:

Data from the National Bureau of Statistics shows that in the first half of 2024, national online retail sales reached 7.1 trillion yuan, a year-on-year increase of 9.8%.

The facts prove that overall market growth still exists, but the differentiation in platform strategies has narrowed.

When the information gap in traffic entry points across major e-commerce platforms disappears, supply chain capabilities become increasingly similar, and consumers make more rational decisions between authoritative information sources, the consensus for growth today lies in user experience.

Placing user experience at the forefront is a process of rediscovering value by returning to fundamentals. Serving consumers well is the prerequisite for everything.

For consumers in today's fourth consumption era and post-bubble economy, after material abundance and endless choices, the search for new meaning and satisfaction in e-commerce platforms remains the underlying logic where the user-first principle always holds true in the history of commercial development.

Looking back at the history of the retail sector, every few decades, a company emerges to push the boundaries of user experience. Returning to the e-commerce industry, staying close to users and listening to their genuine voices have become essential capabilities for any e-commerce platform to thrive today.

On the issue of prioritizing user experience, Douyin E-commerce stands out for its relentless efforts to stay close to users:

At the end of August, Douyin E-commerce invited consumers to visit its Chongqing Customer Experience Center, engaging in face-to-face conversations to listen to user needs and further enhance service capabilities and quality.

During this session, users shared their experiences and stories about after-sales service, consumer rights, customer service, and logistics in e-commerce shopping, offering a glimpse into the diversifying demands of today's e-commerce consumers and how Douyin E-commerce, being closest to consumers, continuously improves their experience.

01 Livestreaming Rooms: The Natural Warmth of Human Connection

For many consumers, "shopping on Douyin" has become part of their daily lives. Douyin E-commerce's latest data shows that 3.8 billion visits enter livestreaming rooms daily, and with the platform's increased investment in user experience, after-sales satisfaction metrics have improved by 13%.

During the User Experience Open Day, we also observed how deeply integrated Douyin livestreaming has become in consumers' lives, as echoed by many attendees:

First, Douyin's content-driven e-commerce model makes shopping more convenient. Compared to the needle-in-a-haystack experience of searching through endless product shelves, content e-commerce makes it easier for consumers to find suitable goods and services.

Second, hosts in Douyin livestreaming rooms actively engage with users, creating a sense of participation and companionship through their 娓娓道来 (storytelling) style.

This includes the popular trend of promoting agricultural products in livestreams, allowing direct connections between consumers and farmers, adding a sense of purpose to responsible consumption.

Additionally, in book and knowledge-focused livestreams, many authors launch new books on Douyin, making it a daily routine for consumers to follow authors and hosts' recommendations.

As consumers put it, they prefer "storytelling livestreams that feel like companionship" and hosts who "promote agricultural products and help local farmers increase income," finding such experiences "very meaningful."

This is almost an inevitable path for every mature consumer market.

In the book "Lonely Society," which describes the fourth consumption era, Japanese author Miura Atsushi extensively elaborates on the meaning of consumption, with the core idea being:

Consumers in mature markets seek process satisfaction. As 炫耀性消费 (conspicuous consumption) declines and 身份不确定性 (identity uncertainty) grows, today's consumers gain more identity affirmation and self-realization through livestream purchases and, more importantly, the companionship and connections in livestreams—far exceeding the value of the purchases themselves.

Douyin E-commerce, through its rich livestreaming features，赋予 (empowers) consumers with new 消费身份 (consumption identities) and values:他们将交际 (socializing)，购买 (shopping)，回馈社区 (community giving), and other traditionally offline behaviors 搬到了 (moved into) Douyin livestreaming rooms.

This undoubtedly reflects consumers' recognition of "good content." With the rapid development of livestream e-commerce, "e-commerce creators" have become a serious career for many, bringing more quality content closer to users.

Douyin E-commerce's latest data shows that over the past year, the platform has seen more than 2 million young e-commerce creators and over 7.53 million new e-commerce creators. Daily livestreaming hours increased by 33% year-on-year, while creators with GMV exceeding 10 million grew by 52%.

An important part of consumers'美好生活 (better lives) is understanding and purchasing goods through Douyin E-commerce. This 云消费 (cloud consumption) experience is turning more consumers into the "Douyin livestreaming generation," inseparable from the 天然温度 (natural warmth) of Douyin livestreams.

In fact, it’s not just consumers who are 收获 (gaining) new lifestyles from the evolving 人货物 (human-goods-platform) relationships—e-commerce merchants and creators are also, in a sense, "users" of the platform.

For merchants, improving consumer 体验 (experience) immerses them in the "human-goods-platform" dynamic. Their sales are no longer limited to in-store or online orders but unfold in richer scenarios, opening doors to broader opportunities.

02 The Value of Platform Customer Service: Professionalism and Warmth

During the consumer tour of the customer service center, one surprising statistic about Douyin E-commerce stood out:

Last year, Douyin's platform customer service handled over 200 million consumer inquiries.

To better address user needs, Douyin continuously innovates its service methods, striving to provide more proactive and 精细化 (granular) services in handling 时效 (response times)，赔付 (compensation), and 特殊场景保障 (special scenario protections).

Over the past six months, Douyin E-commerce strengthened its 前置识别 (preemptive identification) capabilities to offer more timely 服务 (services). It also introduced 专业客服 (dedicated 客服) for industries like jewelry and 母婴 (maternal and child products), with many 客服人员 (service staff) being industry professionals. The 专属客服 (dedicated service) team has expanded by over 1,000 members, with nearly 400 million yuan invested in consumer protection annually, lifting satisfaction by 7.6%.

Douyin E-commerce also develops 标准化 (standardized) and 智能化 (AI-powered) 客服工具 (service tools) for merchants and creators to help them deliver higher-quality service. Merchant service awareness has significantly improved, with average response times 缩短 (shortened) by 16.8%.

The underlying logic behind 持续加大投入 (continuous investment) in 客服专业度 (service professionalism) and 精细化 (granularity) is clear:

AI-driven responses to homogeneous consumer complaints often fail to resolve 个性化 (personalized) or 专业化 (professional) issues, let alone deliver the anticipated 有温度的回应 (empathetic responses). Hence, proactive and 精细化 (granular) service design becomes critical.

One female consumer’s 案例 (case) shared during the visit was particularly striking: During a return process for feminine products, Douyin’s 客服 "quickly escalated to 人工 (human 客服) without complex steps." The next day, the 客服 called to resolve what could have been an endless online dispute, leaving the consumer feeling "the official 客服 really empathized, understood me, and spoke gently."

Like this case, most platform-mediated disputes aren’t about the monetary amount but the 额外情绪关照 (emotional care) and 个性化需求 (personalized attention) from the platform and merchants.

Unlike centuries-old offline commerce built on human interaction, today’s internet commerce resembles a vast virtual space where users demand even more 负责任态度 (accountability) and 有温度的回应 (warmth) from professional 客服。

客服的专业性 (professionalism)，独到性 (unique product insights), and 关怀 (care) are 短板 (weaknesses) for most e-commerce platforms. Today，全网最低价 (lowest prices) and 百亿补贴 (massive subsidies) are no longer 生死手 (game-changers).

Instead, Douyin E-commerce’s investment in 专业客服 (professional service) delivers 以一敌万 (disproportionate) value in enhancing user experience.

03 Winning User Hearts: After-Sales Efficiency and Convenience Are Key

In e-commerce, shipping/return speed and 售后便捷度 (after-sales convenience) are top concerns. Slow shipping, unfulfilled orders, or long pre-sale cycles heavily deter purchases.

This open day yielded positive feedback on these fronts:

"Seeing labels like ‘spoilage guaranteed refund’ when buying perishables on Douyin gives a strong sense of 保障感 (security)," shared a user who frequently purchases fresh food on Douyin, adding that they 希望 (hope) for more diverse 服务权益 (service 权益).

Beyond resolving 售后 (after-sales) issues, offering 前置优质权益 (preemptive 权益)—like 放心购 (worry-free shopping) guarantees—is key to reducing consumer 顾虑 (hesitations). Douyin E-commerce has expanded such 权益 across product selection, shipping, and after-sales for various categories.

Consumers clearly 认可 (recognize) platforms and brands that prioritize 保障 (protection). "服务权益 aren’t just talk. They’re like a brand’s guarantee card, showing they care. Now, I trust brands that take consumer 权益 seriously—they feel more reliable," said one attendee.

These improvements are backed by Douyin’s investments: In 2023, its 极速退 (instant refund) service covered 88% of after-sales orders, shortening refund times by 12 hours on average and lifting satisfaction by 13%. For perishables like 生鲜 (fresh food) and 鲜花 (flowers), the 平台 launched "spoilage guaranteed refund" to address rot, misdelivery, or damage claims.

For 便捷退换 (hassle-free returns), Douyin refined its 极速退 service to enable 审核-free, instant refunds at all stages—pre-shipment, in-transit, or post-delivery.

The 平台 also optimized 物流履约 (logistics fulfillment) with next-day delivery, door-to-door service, and late-delivery compensation. For in-transit issues, it provides real-time updates and solutions like instant refunds, re-shipments, or coupon 补偿 (compensation).

Whether in returns or shipping speed, Douyin’s 保障感 stands out. These 抖音速度 (Douyin-speed) initiatives give it a competitive edge in winning consumers.

04 Conclusion

At the open day, Douyin E-commerce’s representative emphasized that in its "omnichannel interest-based e-commerce" phase, the platform 始终 (always) prioritizes consumer experience, as "good 体验 creates core competitiveness."

This underscores the shift in e-commerce competition from price wars and supply chain battles to 心智争夺 (mindshare capture).

Douyin E-commerce is proving its commitment to responsible e-commerce through 监管责任 (regulatory accountability) and elevating the 格局 (landscape) of omnichannel interest-based e-commerce—a natural evolution that could birth a new 飞轮效应 (flywheel effect).

But the broader value of Douyin’s consumer-centric investments lies in their impact on the industry:

Compared to other e-commerce models, Douyin’s unique 内容 (content) and 情绪价值 (emotional value), coupled with its 客服团队’s 人文关怀 (humanistic care), create distinct advantages. Over time，全面提升的用户体验 (holistically improved UX) will bolster 消费信心 (consumer confidence), validating the foresight of these investments.$KUAISHOU-W(01024.HK) $BABA-W(09988.HK)